Glonghui, April 2 | Yamato released a report stating that Haier Smart Home is still the bank's first choice in the field of home appliances in the mainland. The company's management said earlier that the operating profit margin of the mainland market is expected to improve in the first quarter of this year, with the goal of increasing by 0.5 to 1 percentage point year-on-year this year. It is mainly due to factors such as product structure upgrades, particularly driven by revenue growth in high-end brand Casarte (Casarte); efficiency improvements brought about by digitalization; economies of scale achieved through market share expansion to non-core product categories; and cost efficiency of raw materials. As for overseas markets, the company's management also reiterated the mid-term target of an overall operating profit margin of 7% to match industry leaders in all operating markets. Taking into account the above macroeconomic challenges in China and overseas markets, Daiwa decided to reduce the company's earnings per share estimate from 2024 to 2025 by 3% to 4%. Considering the expansion of gross margin, the bank raised the target price of Haier Smart Home H shares from HK$30 to HK$33, maintaining a “buy” rating.